Onus of coal quality ends at loading point – Coal ministry


Onus of coal quality ends at loading point – Coal ministry

Economic Times reported that in view of the continuing disputes between Coal India and power consumers over loss of quality of coal during transport, the coal ministry has reiterated that once coal in loaded on rakes the miner’s responsibility on the quality of coal ends.

The ministry said in a note that “As soon as coal is loaded in rakes the sale is complete under the Sale of Goods Act. Upon loading, the ownership gets transferred to power generators.

Since the railways is the transporter engaged by coal buyers, including power generating companies, the issue of any loss during transit needs to be resolved by consumers with railways as the coal companies have no locus standi once the ownership has changed.

Therefore, it would be appropriate that the coal consumers take up the issue of loss in coal incurred during transportation with the ministry of railways.” Read More

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